jwtanxietyindexquarterlyfall2009

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VOLUME 3FALL 2009

ANXIETYINDEXQUARTERLY


2/16ANXIETYINDEX QUARTERLY 2ANXIETYINDEX.COM

TOPLINEFINDINGSAfter a year spent surveying brand and consumer response to the recession through ourAnxietyIndex.com, we found that only a handful of the 350 examples we collected across 24countries truly stood out. Creating innovative work isnt easy in any economic climate; its evenharder when marketing budgets are low and risk aversion is high.

Despite these challenges, some notable responses to the recession emerged this past year. OurAnxietyIndex Brand Hall of Fame salutes 10 of the best that weve seenthose that made uswish we had done it (and in two cases, we did). Among them are a brand that re-imagined aproduct, another that sold hope (literally) and another that leveraged the headlines of the daythrough a quick-turnaround campaign.

We believe these will hold up in years to come as case studies of work that transcend typicalapproaches to a downturn. Our third AnxietyIndex Quarterly report lists these Top 10 inascending order and explains why we think these are stand-out responses to the recession.

About AnxietyIndex QuarterlyDuring periods of heightened consumer anxiety, brands need real-time data that can help them navigate arapidly changing landscape.They need answers to new questions and a point of view on the types of businessesand business practices that will emerge out of the crisis.

JWT should know. At 145 years old, we have a proven track record of leading brands through pivotal times.Weve done this by providing tools to help brands succeed. One such tool is our proprietary AnxietyIndex,launched during the run-up to the war in Iraq; it tracks the level and drivers of consumer anxiety and exploreshow these affect attitudes and behaviors.

Earlier this year, we expanded upon our AnxietyIndex by debuting www.AnxietyIndex.com . With daily contentupdates and major research and trend reports added frequently, this interactive site is intended as a place todiscover and discuss how brands and consumers are responding to and coping with the global recession.

Last spring we launched our AnxietyIndex Quarterly.This third issue seeks to contextualize theAnxietyIndex.com content we have published over the course of the year.
http://www.anxietyindex.com/http://www.anxietyindex.com/http://www.anxietyindex.com/http://www.anxietyindex.com/



10. AMERICAN EXPRESS

Program: American Express OPEN

Country: U.S.

Why its one of the best: Through its OPEN card, American Express positioned itself as anally of small-business owners both through word and actions.

Description: In a campaign for its OPEN small-business platform, American Express praisedsmall-business owners as the most powerful force in the economy.They drive change. Andtheyll relentlessly push their businesses to innovate and connect.

While the anthem spot was inspirational, what is truly powerful is the brands OPEN Forum ,an online resource and social networking site for small businesses that features a virtualRolodex of credentialed businesses, marketing toolkits and an idea hub, among other things.

For the past few months, American Express has been pairing up with other organizations tosupport small businesses. Most recently, it linked with NBCU for the Shine A Lightcompetition, in which one small-business owner won $100,000 in grant and marketing supportfor his or her company.

Results: Openforum.com saw steady growth in traffic between September 2008 andSeptember 2009, increasing from 68,005 unique visitors to 355,109. Most of this growthoccurred between July and September this year after the official unveiling of the socialnetwork. During September 2009 alone, Openforums unique visitors spiked by nearly 20percent.The Shine A Light competition received 4,000-plus entries.
http://anxietyindex.com/2009/08/what-role-do-brands-play-in-recovery/https://www.openforum.com/?&SSOCK=1https://www.openforum.com/?&SSOCK=1https://www.openforum.com/?&SSOCK=1http://anxietyindex.com/2009/08/what-role-do-brands-play-in-recovery/



9. CAIXA ECONMICA FEDERALProgram: Lottery

Country: Brazil

Why its one of the best: Caixa Econmica Federal reimagined one of its products toincrease consumer confidence in credit during a crisis.

Description: Brazils national bank, Caixa Econmica, invested in a promotion inspired byBrazilians faith in the luck of lotteries. Each purchase made with a bank credit cardgenerated a coupon that could be raffled.The prize? The bank paid the credit card bill. Thismeant that the more often consumers spent, the more chances they had to win everythingtheyd bought. Betting on a game of faith valued by Brazilians, the bank offered people achance to reduce their worries related to credit card bills.

8. WOOLWORTHS

Program: Were an Employer

Country: Australia

Why its one of the best: Woolworths tackled one of the primary sources of anxieties forAustralians head on.

Description: In April, our AnxietyIndex showed that Australians were more pessimistic aboutunemployment than a series of other potentially troubling factors, such as cost of living, crimeand the state of the economy.Woolworths addressed those fears directly. As the downturn tookhold in Australia in February, Woolworths Ltd. announced that new store openings and growthin existing locations would create 7,000 jobs. We see our role as generating economic activityand jobs, CEO Michael Luscombe said in a release accompanying the announcement, notingthat while 43,000 jobs had recently been lost in the retail sector, Woolworths would continueto hire.

A commercial linked back to this message. It showed a mother going to a job interview withher son, with the message that We employ thousands of Australians. And were alwayslooking for more. Without mentioning the R word explicitly, the spot sounded just the righttone of pragmatic optimism.

Results: Although it shut operations in the U.K.,Woolworths is Australias largestsupermarket retailer, and in the quarter ending Oct. 4, year-over-year sales for the divisionincreased by 3.8 percent to $11.5 billion.
http://anxietyindex.com/2009/07/brazilian-bank-turns-credit-card-into-lottery-vehicle/http://anxietyindex.com/2009/07/for-australians-worried-about-joblessness-woolworths-promotes-itself-as-an-employer/http://anxietyindex.com/2009/07/for-australians-worried-about-joblessness-woolworths-promotes-itself-as-an-employer/http://anxietyindex.com/2009/07/brazilian-bank-turns-credit-card-into-lottery-vehicle/



7. FINANCIAL TIMES

Program: Global Downturn

Country: U.K.

Why its one of the best: The Financial Times novel use of an outdoor mediumbillboardsempty because of the recessiontied in perfectly with the newspapers message.

Description: The Financial Times took over empty billboard spaces in the U.K. to question thewisdom of decreasing marketing budgets during hard times. Stickers in the right-hand cornersof the billboards posed questions like Whats the first mistake businesses make?alludingto studies showing that businesses that increase ad spend during recessions are the ones thatdo best afterward.The goal: to encourage brands to advertise in the Financial Times .

Results: The campaign won a gold CLIO Billboard Award.
http://anxietyindex.com/2009/05/the-financial-times-targets-advertisers-with-novel-use-of-billboards/http://anxietyindex.com/2009/05/the-financial-times-targets-advertisers-with-novel-use-of-billboards/



6. PORTUGUESE RED CROSS

Program: Store+ The Store That Sells HopeCountry: Portugal

Why its one of the best: The Red Cross understood the importance of tapping into the corevalue of hope.

Description: Before Christmas last year, as consumers tightened their wallets, the Red Crossin Portugal decided to sell hope in a literal way. In a popular mall in Lisbon, it opened a storewhere little cards promoting hope were clipped onto hangers and stocked on shelves, just asnormal goods would be; the cards sold for 10 euros apiece. Hope was positioned as a giftalternative for the holidays, a product that people cant hold in their hands but can feelemotionally. Shoppers could get the satisfaction that comes with both a mall transaction andthe act of giving.

Where its messaging could have played on the guilt of previously generous patrons, the RedCross spoke in a voice of optimism.

Results: Hundreds of people attended the opening night, and in its first day the store achieveda place in the malls top 10 for sales; the Red Cross extended the stores hours, as well as itsclosing date. And the store not only helped raise immediate funds but boosted awareness forthe Red Cross. The Hope Store won a gold Lion for PR, two silvers for Direct and a silver andbronze for Promo at the Cannes International Advertising Festival.
http://anxietyindex.com/2009/10/case-study-red-cross-portugal-selling-hope-for-the-holidays/http://anxietyindex.com/2009/10/case-study-red-cross-portugal-selling-hope-for-the-holidays/



5. JETBLUEProgram: Bigwigs: Making Jetting Newsworthy

Country: U.S.

Why its one of the best: JetBlue moved quickly toleverage public sentiment in a timely campaign thatwas perfectly aligned with its brand.

Description: As C-suite execs were getting chastisedfor their excessesprivate jets includedamid bailoutmania, JetBlue turned out its Bigwigs campaign,poking fun at stuffy, stodgy CEOs. It subtlycommunicated more for less by telling Bigwigs,

Muckety-Mucks, Private Jetters and Big Cheeses howjetting on JetBlue is a lot like on your private jet,with a few basic differences. A section on the airlinesWeb site described features such as lots of leg room,DirectTV, free snacks and fares that wont give theCFO a conniption.

Not only did the work fit with JetBlues distinctly un-stuffy, anti-stodgy airline brand, but it was relevantand timely, and undoubtedly struck a chord withbailout-weary American taxpayers.

Results: While most airlines were experiencing double-digit declines, JetBlue recently reported its thirdconsecutive profitable quarter. And as its rivals laid offstaff and cut flights, JetBlue hired 2,300 workers andexpanded to eight additional cities.The airline lookslikely to move from Fortunes top 1,000 to the top 500.
http://anxietyindex.com/2009/03/jetblue-welcomes-bigwigs/http://anxietyindex.com/2009/03/jetblue-welcomes-bigwigs/


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3. THE ECONOMIC TIMES

Program: Power of Ideas

Country: India

Why its one of the best: Rather thanempathize with anxious consumers, The Economic Times inspired them.

Description: The Economic Times createda platform to encourage entrepreneurshipby giving people an opportunity to submittheir business ideas to the financial daily, aswell as receive mentoring and the chancefor funding. Its Power of Ideas contestprovided both inspiration and advice forbusiness development in a recession.

Over the last decade, the spirit of Indianentrepreneurship has been riding high, andthere is a collective feeling in corporateIndia that the country will determinedlyturn the recession into opportunity. Indeed,while anxiety levels are high in India, ourAnxietyIndex found a great deal ofoptimism, both absolute and relative to theother countries weve studied. Research weconducted in April and May found thataside from crime and terrorism, Indiansbelieved that most factorsfrom theeconomy to the cost of living tounemployment rateswould improve overthe next six months.

Rather than mirror the anxiety of consumers, The Economic Times treated them as hope-fueled and talked to them accordingly. It helped to feed Indias ambition and optimism.

Results: According to the programs Web site, more than 12,000 ideas were registered; 254finalists ultimately went on to be mentored by professionals.
http://anxietyindex.com/2009/03/indias-leading-business-daily-encourages-entrepreneurship/http://anxietyindex.com/2009/03/indias-leading-business-daily-encourages-entrepreneurship/



2. LEVIS

Program: Live NOW, Pay Later

Country: India

Why its one of the best: Levis came up with asolution that was revolutionary for the apparelcategory.

Description: In India, Levis is a premium brandand the No. 1 denim brand.The brand is hugelyaspirational; making it more accessible andbroadening the user base is the challenge: Howdoes Levis cater to those who aspire to it butmay not be able to afford a purchase? And howcan it do that without discounting the brand orweakening its premium positioning? Levis alsowanted to increase frequency and value ofpurchase among existing customers.

In the face of a global recession, these wereparticularly challenging goals. Our April-MayAnxietyIndex in India found that when it comesto saving money, Indians are most likely toconsider reducing purchases of branded apparel;one-third have contemplated switching apparelbrands in favor of more affordable options. Tocounteract these tendencies, Levis brought innew category thinking: It partnered with one ofIndias major banks (HDFC) to offer an EMI(equal monthly installment) scheme.

JWT wanted to use the creative to keep the brand in the conversation. So the communicationchampions a Live Now philosophy; the anthem print ad, which brings this to life, takes onthe un from the Live Unbuttoned global Levis campaign.

Results: The program has seen terrific industry and consumer response, and has generated alot of PR and buzz.The average bill value has risen by about US$20, and 60 percent of HDFCcredit card users who have recently made a Levis purchase have used the EMI scheme.
http://anxietyindex.com/2009/09/levi%e2%80%99s-live-now-pay-gradually/http://anxietyindex.com/2009/09/levi%e2%80%99s-live-now-pay-gradually/



1. HYUNDAI MOTOR AMERICA

Program: Hyundai Assurance

Country: U.S.

Why it is the best: Hyundai Motor America was a leader in removing the risk from purchase.Its Assurance Program inspired myriad brands to follow with their own versions of job-lossguarantees.

Description: Lose your income, return your carthats the assurance the South Korean brandgave people who financed or leased a new Hyundai in 2009. The deal provided certainty inuncertain times, as the promotional material stated.

With anxiety levels high and the future uncertain, consumers were reluctant to spend in

2009even if they werent directly impacted by the recession. They were especially reluctantwhen it came to bigger-ticket items or long-term financial commitments. Hyundai sold peaceof mind by taking some of the risk out of the equationas did the brands that followed,including JoS. A. Bank Clothiers and Bigelow Homes in the U.S.,Telefnica in Spain, AIGIsrael, Virgin Mobile USA and Ponto Frio in Brazil.

Results: At a time when most major automakers in the U.S. watched sales slide by as muchas 25 to 50 percent, Hyundai Motor Group reports that sales are up 2.6 percent for theyearin fact, its the only automaker to see its U.S. sales rise. Hyundai Motor Group (whichincludes the Hyundai and Kia brands) gained 2.2 percentage points of market share this year,becoming the sixth-largest automaker in the U.S. based on sales volume.
http://anxietyindex.com/2009/01/lose-your-income-return-your-car/http://anxietyindex.com/2009/01/lose-your-income-return-your-car/



APPENDIXLEVELS AND DRIVERS OF CONSUMER ANXIETYThis cross-market look at JWTs AnxietyIndex compares the levels, intensity and drivers ofanxiety across 11 markets: the U.S., the U.K., Canada, France, Spain, Australia, Brazil,Russia, India, China and Japan. It is based on data collected from adults age 18-plus throughonline surveys conducted in 2009. Data were weighted by age, gender and household incomebased on government population statistics.

Levels of anxiety vary significantly across the 11 markets weve surveyed, ranging from a lowof 35 percent in China to a high of 90 percent in Japan. (See Figure 1.) While overall anxietylevels remain generally high, they are starting to abate across the markets we regularly track:In the U.S., the anxiety level dropped from a high of 82 percent in November 2008 to 72percent in September; in the U.K., it shrunk from a high of 74 percent in March to 65 percentin September; in Canada and Australia, it fell from 71 percent in December 2008 to 55percent and 59 percent, respectively, in September.

Overall, given everything that is going on in the world, the country, and your familys life, hownervous or anxious would you say you currently are?

Figure 1: Levels of anxiety

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Japan Russia India U.S. Spain Brazil U.K. Australia ChinaFranceCanada

1610 2628

84 7490

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70 66 65 59 5542 35

% Nervous/Anxious % Not Nervous/Anxious



Overall, given everything that is going on in the world, the country, and your familys life, hownervous or anxious would you say you currently are?

While Japan is the most anxious market, Russia records the most intense anxiety, with 38percent of respondents saying they feel very nervous/anxious. (See Figure 2.) Again, theintensity of anxiety has been diminishing in the markets we survey on a regular basis: In theU.S., the percentage of respondents reporting intense anxiety fell from 25 percent in earlyNovember 2008 to 16 percent in September; in the U.K., from 16 percent in March to 9percent in September; and in Canada, from a high of 17 percent to 8 percent in September.

Figure 2: Intensity of anxiety

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0JapanRussia India U.S. SpainBrazil U.K. Australia ChinaFrance Canada

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3025

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% Very Nervous/Anxious



Not surprisingly, the economy is the primary driver of anxiety in most markets. (See Figure 3.)In the U.S., the U.K. and Spain, the primary drivers of anxiety are the economy and the costof living.The same is true for Russia, Japan and India, although its more exaggerated in thosemarkets. Also driving anxiety in Japan is the cost of health care, crime and politicalleadership. Indians are worried about those factors, as well as crime, the threat of terrorismand current military hostilities. Brazilians are concerned about the cost of health care andcrime. Relative to the average of the 11 countries weve surveyed, the drivers of anxiety inCanada, France, Australia and China are muted.

Events in your life, in the country and in the world can make people nervous or anxious. Foreach of the following, please indicate how nervous or anxious you currently are, or not.

Figure 3: Drivers of anxiety

Political Leadership

State of Economy

Cost of Health Care

Cost of Living

Job SecurityCrime

CurrentMilitary

Hostilities

PotentialMilitary

Hostilities

Threat of Terrorism

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U.S.CanadaBrazilU.K.SpainFrance*RussiaJapan*China**India* Australia Average

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*Potential military hostilities not measured in France, Japan or India.**Political leadership, threat of terrorism, and potential and current military hostilities not measured in China.

***Quality of health care measured in Canada and France instead of cost of health care.

AnxietyIndex: % who are nervous or anxious/% who are not



In terms of specific drivers of anxiety, unemployment is heavily cited across a number ofnations, including the U.S., Brazil, Spain, Japan and India.The U.S. is also worried about thegovernments budget deficit, as is the U.K. Food prices are causing anxiety for Brazilians,Indians and Russians. Russians are also worried about the safety of the food supply, whileBrazilians are also concerned about the impact of global warming. India is worried about ahost of issues, including the impact of global warming, natural disasters, the nationalinfrastructure, the stock market, gas/petrol prices, the housing market and the war in Iraq. Thesame applies for Japan, which is concerned about the impact of global warming, naturaldisasters and the quality of products imported from China. Australians are worried about gasprices. Compared to the average of the markets weve surveyed, Canada, France and China arefairly calm about these factors.

Events in your life, in the country and in the world can make people nervous or anxious. Foreach of the following, please indicate how nervous or anxious you currently are, or not.

Figure 4: Specific drivers of anxiety

The governmentsbudget deficit

The stock market

Bank failures

Gasoline/Petrol prices

Food prices

Unemployment rates

Natural disasters

The war in Iraq

The housing market

Quality of productsimported from China

The state of the nationalinfrastructure

The war in AfghanistanImpact of global warming

Safety of the foodsupply

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U.S.CanadaBrazilU.K.SpainFrance*RussiaJapan*China**India* Australia Average

AnxietyIndex: % who are nervous or anxious/% who are not*Bank failures, governments budget deficit, safety of food supply and

the war in Afghanistan not measured in Japan or India.**Bank failures, governments budget deficit, quality of products imported from China, safety

of food supply, the war in Iraq and the war in Afghanistan not measured in China.


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For AnxietyIndex inquiries, please contact Ann Mack ([email protected] , 212-210-7378).
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jwtanxietyindexquarterlyfall2009